Indications that the U.S. Treasury will need to increase its level of borrowing in the open market should result in higher market interest rates.

Question

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When the U.S. Treasury increases its borrowing in the open market, it typically issues more Treasury securities. This increase in supply can lead to higher interest rates, as the government needs to offer more attractive yields to entice investors to buy the additional debt. Higher yields on Treasury securities can lead to higher overall market interest rates, as other forms of credit need to offer competitive rates to attract investors.

Indications That the U